Multiple Choice
-In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit falls, the amount of loanable funds demanded will be
A) $450 billion.
B) greater than $600 billion.
C) less than $450 billion.
D) between $450 billion and $600 billion.
Correct Answer:
Verified
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